REG - JLEN Environmental - Net Asset Value and Dividend

JLEN Environmental AssetsAnnouncement

16/02/2024 07:00

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RNS Number : 3513D  JLEN Environmental Assets Group Ltd  16 February 2024

16 February 2024

JLEN ENVIRONMENTAL ASSETS GROUP LIMITED

("JLEN" or the "Company")

 

Net Asset Value and Dividend Announcement

 

Net Asset Value

 

JLEN Environmental Assets Group Limited ("JLEN" or the "Company"), the listed
environmental infrastructure fund, announces that its unaudited Net Asset
Value ("NAV") at 31 December 2023 was £777.7m (117.6 pence per share). This
reflects a decrease of 2.1 pence per share since 30 September 2023 after
paying the quarterly dividend of 1.9 pence per share.

 

Highlights in the period

 

·    Solid operational performance with continued strong cash generation
from investments

·    Near term price fixes achieved in excess of valuation assumptions,
partially mitigating downward movements from updated power price forecasts and
actual inflation

·    Continued focus on asset enhancements in the portfolio to increase
operational efficiencies

·    Acquisition of the remaining 30% shareholding in Bio Collectors
Holdings Limited creating the potential for JLEN to deliver operational
synergies across its portfolio of food waste anaerobic digestion plants

·    Steady progress on development and construction assets in line with
expectations

·    Prudent balance sheet management maintaining low levels of gearing

 

Summary of changes in NAV:

 Item                                                                            Pence per share movement
 NAV at 30 September 2023                                                        119.7p
 Dividends paid in the period                                                    -1.9p
 Power prices (downward revision from forecasts offset by value accretive price  -1.5p
 fixes)
 Battery storage revenue forecasts                                               -0.6p
 Actual inflation                                                                -0.7p
 Other movements (including actual performance)                                  +2.6p
 NAV at 31 December 2023                                                         117.6p

Valuation factors

 

Key valuation movements include the negative impact from reductions in
independent power forecasts (-2.3p), partially offset by the subsequent
Electricity Generator Levy movement and favourable price fixes secured in the
period (+0.8p). In addition to this, reductions in the gross margin forecasts
for battery storage assets, prompted by independent consultants reappraising
the available revenue opportunities, led to a -0.6p reduction. Lastly, there
was also downward revision from the recognition of actual quarterly inflation
finishing the calendar year below forecasts (-0.7p). The Investment Manager
continues to monitor macroeconomic markers, including UK gilt yields, and
consequently discount rates remain unchanged this period.

 

Gearing

At 31 December 2023 project level gearing was 17% and overall fund gearing was
30%, with the Company's Revolving Credit Facility ("RCF") £148.1m drawn from
a total facility size of £200m. The Company continues to maintain sufficient
headroom in its RCF to finance its firm commitments relating to construction
assets held within the portfolio and earmarked follow-on investments.

Capital allocation strategy

The Investment Manager continues to make good progress on selective asset
disposals with several credible opportunities being pursued, in line with the
Company's capital allocation strategy.

 

As stated in previous announcements, surplus capital generated from the
portfolio and from asset sales will be prioritised towards existing
commitments, compelling follow-on investments and value enhancements,
alongside managing the RCF to maintain a robust balance sheet and the
potential for share buybacks.

 

Dividend

The Company also announces a quarterly interim dividend of 1.9 pence per share
for the quarter ended 31 December 2023, in line with the dividend target of
7.57p per share for the year to 31 March 2024, as set out in the 2023 Annual
Report.

 

Dividend timetable

 

Ex-dividend date:    29 February 2024

Record date:            1 March 2024

Payment date:         22 March 2024

 

This announcement contains information that is inside information for the
purposes of the Market Abuse Regulation (EU) No. 596/2014.

 

For further information, please contact:

 

 Foresight Group                         +44(0)20 3667 8100

 Chris Tanner                            institutionalir@foresightgroup.eu

Edward Mountney

Wilna de Villiers
 Winterflood Securities Limited           +44(0)20 3100 0000

 Neil Langford
 SEC Newgate                             +44 (0)20 3757 6882

 Elisabeth Cowell                        Jlen@secnewgate.co.uk

Alice Cho

Harry Handyside
 Sanne Fund Services (Guernsey) Limited  +44 (0)20 3530 3600

 Matt Falla

Gemma Berry

 

About JLEN

JLEN's investment policy is to invest in a diversified portfolio of
Environmental Infrastructure. Environmental Infrastructure is defined by the
Company as infrastructure assets, projects and asset-backed businesses that
utilise natural or waste resources or support more environmentally friendly
approaches to economic activity, support the transition to a low carbon
economy or which mitigate the effects of climate change. Such investments will
typically feature one or more of the following characteristics:

· long-term, predictable cash flows, which may be wholly or partially
inflation-linked cash flows;

· long-term contracts or stable and well-proven regulatory and legal
frameworks; or

· well-established technologies, and demonstrable operational performance.

JLEN's aim is to provide investors with a sustainable, progressive dividend
per share, paid quarterly and to preserve the capital value of the portfolio
over the long term on a real basis. The target dividend for the year to 31
March 2024 is 7.57 pence per share(1).

JLEN is an Article 9 fund under the EU Sustainable Finance Disclosure
Regulation and has a transparent and award winning approach to ESG.

Further details of the Company can be found on its website www.jlen.com
(http://www.jlen.com/)

 LEI: 213800JWJN54TFBMBI68

 ((1)) These are targets only and not profit forecasts.  There can be no
assurance that these targets will be met or that the Company will make any
distributions at all.

 

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